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EWT; Who should pay for it?

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1 EWT; Who should pay for it? on Mon May 26, 2014 6:23 pm

Eiluj_18


Arresto Menor
Dears,

I would like to ask for your advice Re: Payment for EWT (Expanded Withholding Tax). In our company, every time we make a purchase or use a service of a company or individual we are entitled to withhold a 1%, 2% 5% or whichever service that is applicable as long as we provided them the 2307 form.

I just want to know if We, employees are required to pay for the EWT for those services, purchases that we made if we fail to provide or request for the 2307 from?

Its for the use of the company but why we are REQUIRED to pay for the EWT? even 5.00 purchase they required us to pay for it.

Is this legal? why do we have to pay out of our pocket if its for company gain?

your opinion to this matter is highly appreciated.

thank yoU!

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2 Re: EWT; Who should pay for it? on Tue May 27, 2014 10:01 am

Patok


Reclusion Perpetua
what do you mean make a purchase or avail of service of individual? is this for company use? or personal use of the employee?

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3 Re: EWT; Who should pay for it? on Tue May 27, 2014 6:46 pm

Eiluj_18


Arresto Menor
Yes, this is for company used. for example we purchased cleaning materials for office used in a supermarket the practice of the company is to withhold 1% from it.

in a supermarket, you cannot present the 2307 because most of the cashiers doesn't have idea about EWT and wont accept if my payment is less compare with what i purchased.

so what happened is that WE employees are the one pays for the EWT even though its for office used.

please help.

thank yoU!

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4 Re: EWT; Who should pay for it? on Wed May 28, 2014 10:16 am

Patok


Reclusion Perpetua
anong basis nila bakit daw ganon? bakit kayo pumapayag?

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5 Re: EWT; Who should pay for it? on Thu May 29, 2014 10:58 am

Eiluj_18


Arresto Menor
it was already a tradition i think with the company. its the usual practiced when i joined the company 2 years ago..at first it was Ok because its just minimal amount that we pay for the EWT P50.00 but eventually i need to purchased a lot of things for our events and pay for the services of our supplier which will amount to P500 or more (if you will combined it in an annual basis its more that a thousand). then I raised this issue with my manager and she told me that it was what our accounting who implemented it which was directed from BIR..

BIR release a memo that there would be certain bracket (P10000.00) or more from regular supplier which they will deduct the 1% or 2% EWT. but every time they will conduct an audit they will check every peso that we've spent . so its useless, that's why our accounting will charge the employee for every single amount that we purchase even though its for the used of the company.

Please give advice if this will cause a problem with our employer eventually, if this is against the labor code? because the income of the employee were being used to pay for the EWT for the purchased that we've made for the company.

thank you!

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6 Re: EWT; Who should pay for it? on Thu May 29, 2014 11:00 am

Patok


Reclusion Perpetua
ofcourse it's against labor code.. the EWT should be deducted in the total amount paid and remitted to BIR by the company. It shouldn't be taken from employees. If they are taking it from you, then let the company buy the items not you.

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